1 Paris EUROPLACE 2005 Financial Forum Tokyo - November 29, 2005 Daniel Scolan Executive Vice President Investor Relations VIVENDI UNIVERSAL IMPORTANT NOTICE: INVESTORS ARE STRONGLY URGED TO READ THE IMPORTANT LEGAL DISCLAIMER AT THE END OF THIS PRESENTATION 2 First class assets and leading brands French GAAP VU is among the leaders in its different markets: Comparable basis 2004 figures World’s leading music company Revenues: €4,993m, Operating Income: €338m World’s leading on-line games company Revenues: €475m, Operating Income: €(183)m but positive in ‘05 France’s leading pay-TV network & satellite platform Revenues: €3,470m, Operating Income: €184m (8m subscribers as of end-September ‘05) France’s 2nd operator of mobile telecommunications Revenues: €8,317m, Operating Income: €2,257m (16.5m subscribers as of end-September ‘05) Morocco’s leading telecommunications operator Revenues: €1,658m, Operating Income: €682m (8.3m mobile customers as of end-September ’05) (1.35m fixed lined & 179,000 DSL customer as of end-September’05) 3 VU Operates Leading Media & Telecom Assets Music Video TV / Film Film Pay-TV Mobile / Mobile / Games Fixed line Fixed line 92% 99% 20%* 100% 100% 56% 51% 28% neufCegetel Global Content Local Distribution Platforms * 20% controlling interest and a 18.5% ownership interest 4 Vivendi Universal Today A coherent group in global content and local distribution platforms: 33 000 employees Revenues of approximately €19 billion Net income and recurring net cash flow of about €2 billion in the future Market capitalization of about €30 billion 10th largest in France 34th largest in Europe 4th most active stock in Paris Stock Exchange in October 2005 5 Vivendi Universal is in Great Shape Focus on business operations: growth, profitability, development; Investment is growing in content creation, telecom infrastructure and distribution platforms; The financial restructuring is now complete; A handful of reasonable acquisition targets; Excellent earnings visibility for the group; Vivendi Universal is able to combine growth and cash returns. 6 All VU businesses are profitable and growing On a comparable basis Strong operating performance in the 9 months 2005: Revenues: + 8% to € 13,960 million; EFO: + 24% to € 2,971 million; Adjusted Net Income: + 73% to € 1,687 million. Revenues EFO 9m 2005 9m 2005 9m 2004 Universal Music Group: €3,211m +3% €213m €95m Vivendi Universal Games: €396m +88% €20m (€200m) Canal + Group: €2,515m +3% €267m €294m SFR €6,475m +8% €2,032m €1,844m Maroc Telecom €1,380m +14% €565m €512m 9 months 2005 revenues by business 7 French GAAP In millions of euros On a comparable basis 9 months 2005 revenues: €13,960 m + 8% 9 months 2005 Revenues by business* (in €m) Maroc Telecom Canal+ Group €1,380 m €2,515 m 10% 18% UMG €3,211 m SFR 23% €6,475 m VU Games 46% €396 m 3% 8 Vivendi Universal’s 2005 Guidance as updated on September 13, 2005 Vivendi Universal will exceed its 2005 Adjusted Net Income growth target announced at the 2005 AGM In IFRS > €1,800 m In millions of euros €1,330 m EPS from … to above €1.16 … €1.57 DPS of … at least €0.60 … 50% payout 2004 2005 9 Vivendi Universal is positioned on growing markets in usage Explosion of usage… Increasing level of music consumption; Explosion of Online and mobile video games; Trend in TV consumption habit geared towards multi channel; Constant increase in voice minutes and data traffic on mobile telephony networks. … despite regulatory pressure on prices… … and with an expected reduction in piracy: 2005 the turning point? (Grokster closed its operations on November 7, 2005) 10 Focused on investing in quality content Universal Music Group: Continuous investment in Artist & Repertoire (A&R) to expand into new genres, identify emerging talent and develop new artists; Develop and acquire music publishing catalogs and publishing rights. Vivendi Universal Games: Investment in Blizzard and Sierra to develop and publish new games; Acquisition of development studios: Swingin' Ape, Radical, Swordfish Studios; Creation of specific content for wireless games. Canal+ Group: Acquisition of exclusive rights for the Canal+ Premium channel: Sport: French Soccer League, main European Soccer leagues, French rugby Top-14 … Cinema: 75% of top 30 in 2005 French Box Office and exclusive agreements with ¾ of major US studios (Universal, Sony / Columbia, Fox, Dreamworks…) StudioCanal: strong releases in movie co-production & distribution and benefice of the Working Title JV with Universal. SFR: Secured exclusive rights (Soccer, Music, TV) to attract 3G subscribers. Broadband penetration creates new opportunities 11 within all our businesses and at their frontier Broadband increases value in content: Music: download services & ringtones thematic channels Online Game: World of Warcraft Pay-TV: DSL & DTT offer Video on Demand: CANALPLAY New services on 3G networks: MMS, Mobile TV, mobile visiophony, 3D and multiplayer games… Mobility creates new opportunities 12 within all our businesses and at their frontier SFR / CANAL+ Group: Messages Video phone Launch of the world’s first Pay-TV Music package over mobile phones SFR / UMG: News TV Strategic agreement for the distribution of music and video content over mobile Games Corporate Services Wireless Games: Creation of a wireless mobile division within VU Games Verizon / UMG / amp’d mobile: Payment Internet Acces Launch of a music-focused MVNO (amp’d mobile) on the US market Each business benefits from 13 being part of Vivendi Universal Our businesses are distinct but benefit from strong complementary characteristics: Quality and exclusivity of content drive growth on digital distribution platforms; Common key skill sets: Subscription management (SAC, churn, ARPU, CRM, …), Development of brands and talent, Content digitization, Intellectual property management; Innovation and customer care management. Shared projects create competitive advantages: Time to market / Creation of new markets; Best practices in technology and marketing expertise; Incremental growth drivers. Vivendi Universal: 14 a good usage of content and distribution Creation and development of Content Content brands and talent Platform and Marketing and distribution subscriber networks, customer loyalty, management interactive services Management of investment and Networks technological innovation A unique management philosophy 15 as a key advantage VU’s management board is composed of the heads of VU’s businesses: Music, Games, Pay TV, SFR, Maroc Telecom and Group CFO. A strong management team: remarkable track record; focused on operating skills; results-driven; incentivized on clear objectives: earnings and cash flow. A collegial management able to: link operating people for cross fertilization; launch common projects at their initiative; create more value as a Group than each business would apart; leverage a handful of reasonable acquisition targets. Growth Drivers 16 for 2006 – 2008 are Already In Place Digital distribution and new sources of music revenues: Digital distribution already accounts for 6% of total UMG sales Exclusive premium content and launch of Pay-DTT: Launch of Pay-DTT in November in France Development of World of Warcraft in new and existing markets: Already more than 4.5 million paying customers around the world Mobile data services, 3G infrastructure, fixed-mobile substitution; Mobile and DSL penetration in Morocco. Investing in content creation, telecom infrastructure and distribution platforms 17 Vivendi Universal’s Key Advantages Ability to outperform competition in each of VU’s markets: N°1 or N°2 in our key markets Leverage strong and efficient partnerships through key alliances: Vodafone, GE, Kingdom of Morocco Financial flexibility with which to build its future No identified systemic risk Sustainable and controlled development Collegial management philosophy Vivendi Universal combines growth and cash returns Vivendi Universal: 18 A Commitment through Time Vivendi Universal offers a unique combination of growth and cash returns with a commitment to deliver in the future: €2bn Adjusted Net Income and €2bn net available cash flow; €1bn dividend payment (50% pay-out); A capacity to make reasonable acquisitions, while maintaining a financial net debt level between €3bn and €6bn. Vivendi Universal offers exposure to attractive businesses benefiting from: cross-fertilization; global transition to broadband; achievements of mobile services. 19 IR Team Daniel SCOLAN Executive Vice President Investor Relations +188.8.131.52.12.33 firstname.lastname@example.org New York Paris 800 Third avenue 42, Avenue de Friedland New York, NY 10022 / USA 75380 Paris cedex 08 / France Phone: +1.212.572.1334 Phone: +184.108.40.206.12.33 Fax: +1.212.572.7112 Fax: +220.127.116.11.14.16 Laurence Daniel Eileen McLaughlin IR Director IR Director email@example.com firstname.lastname@example.org Edouard Lassalle IR Analyst email@example.com For any financial or business information, please refer to our Investor Relations website at: http://www.vivendiuniversal.com/ir 20 Important Legal Disclaimer This presentation contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to, the risks that: the estimated levels of cash-flow and revenues stated will not be realized; the synergies and other benefits associated with certain transactions will not materialize; the anticipated reduction of Vivendi Universal’s indebtedness will not materialize in the time period or manner described in the presentation; Vivendi Universal will not be able to obtain the necessary approvals to finalize certain transactions; Vivendi Universal will be unable to further identify, develop and achieve success for new products, services and technologies; Vivendi Universal will face increased competition and that the effect on pricing, spending, third-party relationships and revenues of such competition will limit or reduce Vivendi Universal’s revenue and/or income; Vivendi Universal will be unable to establish and maintain relationships with commerce, advertising, marketing, technology, and content providers; Vivendi Universal will not be able to obtain or retain, upon acceptable terms, the licenses and permits necessary to operate and expand its businesses; as well as the risks described in the documents Vivendi Universal has filed with the U.S. Securities and Exchange Commission and the French Autorité des Marché Financiers (AMF). Investors and security holders may obtain copies of such documents free of charge at www.sec.gov and www.amf-france.org or directly from Vivendi Universal. Vivendi Universal does not undertake, nor does it have any obligation to provide, update, or revise any forward-looking statements.